WEEKLY TRENDSETTER (NOV 17th ,2023
| 2023 | Nov 3 | Nov 10 | Ch % |
| NIFTY | 19230 | 19425 | 1.01 |
| BANK NIFTY | 43318 | 43820 | 1.16 |
| USD/INR | 83.28 | 83.35 | 0.08 |
MARKET REVIEW–The market began the week with a bang with 200 points gain. However, it changed to consolidation mode and for rest of the week was largely range bound. The mood looks buoyant and the coming week could see the market in an upbeat mode.
BACK TO RESULTS (Sep qtr.)
The Sept quarter results are trickling in. So far, it has been a decent show. This week let us explore some of them:
Rs in cr, Bracket indicates ch in % against Sep,22 quarter.
| Company | Revenue | Net profit |
| Ipca Lab | 2034(+27) | 137(-6) |
| BCL Inds | 481(+6) | 20(+2100) |
| Marksan Pharma | 531(+17) | 84(+40) |
| Fineotex Chem | 145(+8) | 31(+47) |
IPCA Lab (1051) The company has been bogged down by US FDA woes in the last few years. Despite that it has managed to post decent results. Recently the cloud seems to be finally clearing with the Ratlam unit getting some reprieve. The company is also having a slew of inspections in its sites which is seen as a part of the company’s efforts to scale up its operations in US, especially after its acquisition of Unichem.44% of its revenue comes from domestic market. The scrip is witnessing a steady uptrend and is a good investment candidate.
BCL Inds (51)-The company is an agro based manufacturing company engaged in businesses like edible oil, rice milling grain-based Distillery and Real Estate. It has been showing steady growth over the years and on a relative basis to its peers appears attractive. It has posted Rs 15 EPS for the first 6 months of FY24.The scrip has recently got sub-divided into 1:10 which will make the scrip more liquid. The Sept quarter has shown a decent performance and with a Rs 8 EPS appears attractive.
Marksan Pharma (130)- The company has a diverse mix of therapeutic drugs related to pain management, cough & cold, anti-diabetic, Cardiovascular System, Central Nervous System and gastrointestinal. Segment wise the revenue profile has shown a gradual shift from prescription-based drugs to OTC which has increased from 44% to 74% in the past 5 years. This has resulted in improved margins. It looks headed to post EPS of 7.5-8 for FY24 after 2 stellar quarters. Investor interest appears high with an upward price momentum. The stock looks attractive at current levels.
Fineotex Chem (321)- This was a high flier till 2022 after which has cooled off after a couple of subdued quarters. However, the performance is springing back to action with the Sept quarter results showing a decent show. Its primarily into textile chemicals and cleaning and hygiene segment which is expected to be the growth driver and involved in manufacture of housekeeping, kitchen care and disinfectants. With 22% catering to global markets the company is poised to increase its global footprints in the coming quarters. With an expected EPS of Rs 12-13 for FY24 the scrip is an accumulation candidate. Ideal levels are 275-300
MARKET OUTLOOK
Some technical cues are as follows going by market trends: –
NIFTY – The index closed above 19400 after a decent consolidation. The consolidation could aid the index to scale past 19600 in the early part of the week.
BANK NIFTY-The pullback is facing resistance at around 43900. However, going by price action, the index should scale past that level for a possible target of 44500 in the coming week.
DIWALI PICKS
Marksan Pharma (130) -The pharma sector is on a strong comeback. This scrip has been an outperformer within the sector with a huge breakout and posting a life time high. Buying could be considered at dips for a possible target of 180.This was also recommended last week for weekly buy at 119.
BCL Inds (51)-The scrip has been on a long consolidation phase between 45-50 and now taking support above 50. Steady accumulation is seen and the stock looks poised to advance to levels of 75.
WISHING ALL READERS, A VERY HAPPY AND PROSPEROUS DIWALI!!
Note: Any queries /clarifications may be addressed to stockmasala@gmail.com .
Krish Subramanyam